What To Do With Buffalo Wild Wings Pre-Earnings

Buffalo Wild Wings

is scheduled to report its first quarter earnings in two weeks, and analysts at Sterne Agee previewed the results on Monday morning. While they trimmed their estimates on the back of higher-than-expected wing costs, they maintained their long-term view intact. They rate the stock a Buy, and set the price target at $208. The analysts now expect first quarter EPS of $1.61, down from $1.65 and below the Street's estimate of $1.64. The new projection implies same store sales growth of 8 percent (down from 9 percent), "and slightly increased COGS (higher-than-expected chicken wing pricing)." For the second quarter, the EPS estimate was also lowered, from $1.46 to $1.39. However, the same store sales projection was maintained, at 4.3 percent. Finally, for the full year, the analysts are modeling EPS of $5.92, down from $6.02; the 2016 estimate remained untouched, at $7.30. The firm argues that Buffalo Wild Wings is "one of the most attractive long-term names to own in the restaurant industry given: (1) Significant unit growth opportunities (global target = 3,000); 2) Strong SSS and new store performance; 3) Introduction of table-top tablets with ordering capability should be a check driver and lower labor costs looking out over the next 12-24 months." Shares of Buffalo Wild Wings are down slightly on Monday trading.